A credit card is a convenient financial tool that provides instant credit lines and payment options for any transaction. Gone are the days when people used to store cash for travel or any emergency need. A credit card is a valuable asset if used with discretion and care. It replaces the need for bank deposit overdrafts, high-interest personal loans, or borrowings from friends or family.
A credit card is available to any customer profile based on their income, investments, bank deposits or relationship with a financial institution. A good credit rating helps the borrower secure high-value loans in future, e.g. home, vehicle, business, etc. Careful usage and stellar payment history build a good credit score for the borrower.
Credit cards offer a host of benefits like access to interest-free credit. Any other credit instrument bears interest from day one of the loans. A credit card offers zero interest credit for 30-45 days. As long as payments are made in full before the card’s due date, there are no interest charges.
While credit cards are convenient to use, cardholders must pay credit card bills on time. A credit card bill payment can be made using different options.
Credit card bills can be paid online using internet banking. If the cardholder has a bank account with the same card issuing bank, they can pay the bill through single account login. The user must have internet banking activated for the bank account. Linking the credit card with the account for single-click payments is advisable. Online credit card payments can be made from anywhere in a few easy steps. The credit card bill payment reflects instantly without any delay.
Payment through credit card billing site
Every credit card issuer allows cardholders to pay through their bill desk using their bank account. The bank must be on the list of registered banks for bill payment.
Payment through digital wallets
Digital wallets are the preferred mode for all payments nowadays. It is an easy and quick mode to settle bills without logging into internet banking. Even credit card bills can be paid through digital wallets.
While there are multiple ways to make credit card bill payments online, the traditional mode of bill pay still exists. For those who still prefer to pay credit card bills in offline mode, a cheque payment facility is the easiest option. Usually, business owners choose to make payments through cheque facilities. Cheque payments are safe and help keep track of all transactions for accounting and tax purposes.
For example, a business may manage all payments through their account department, and every employee may not have access to online transactions. In such cases, the user can make payment through cheque to settle card bills for business expenses.
Credit card cheque payment is easy, convenient, and safe to do. A cheque must be drawn favouring the credit card number and card issuing bank name to make credit card cheque payments. The payment amount should be the same as the bill amount.
Points to remember for credit card bill payment through cheque
Any payment lesser than the due amount attracts an interest penalty and late payment charges.
Card users must ensure that the signature on the cheque matches bank records.
The credit card bill payment amount should be appropriately filled in figures and words.
All the details must be filled in correctly and rechecked before making payment through cheque to ensure no discrepancy.
The payor’s mobile number should be mentioned on the cheque’s reverse side. Then, the bank can contact the payor in case of any discrepancy.
It takes three working days for a cheque to be cleared and payment finally settled to the credit card. Therefore, payment must be made 3-4 days before the card payment due date. Festival and bank holidays must be considered while making credit card cheque payments.
Cardholders can schedule the credit card bill payments using post-dated cheques to avoid last-minute delays and penalties.
The cheque will be returned if funds are insufficient in the bank account. The balance in the bank account must be sufficient to cover the cheque amount. A cheque return attracts a penalty from the bank. It will also delay the card payment and result in late payment and interest charges. Frequent late payments affect the card holder’s credit score.
To conclude, credit cards are convenient for making payments and avail credit. Credit card bills can be paid in multiple modes. Online payments can be made using internet banking, digital wallets or bill desks. Online payments are swift, involve zero paperwork and can be done from anywhere, anytime. Credit card bills are an excellent option for users who prefer offline payments. A cheque pay facility is safe and foolproof. Regular, timely credit card bill payments through cheque or online mode help build a good credit score. To know more, visit Tata Capital.